News Corp posts quarterly loss as print ad sales fall
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A sign is seen outside News Corporation building in New York, June 27, 2012. REUTERS/Brendan McDermid/File Photo
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
(Reuters) - News Corp (NASDAQ: NWSA), the owner of the Wall Street Journal, Dow Jones Newswires and book publisher HarperCollins, reported a quarterly loss as it struggles to cope with a decline in newspaper advertising sales.
The company, controlled by media mogul Rupert Murdoch, has been reducing staff and implementing other cost-cutting measures in its Dow Jones division, which includes the Journal, while building up its digital real estate business.
Revenue in the company's news and information division, which accounts for about two-thirds of total revenue, fell 5.3 percent to $1.22 billion in its first fiscal quarter ended Sept. 30. Advertising revenue fell 11 percent.
News Corp is not alone in its struggle to arrest a decline in print advertising.
Spending on newspaper advertising in the United States is expected to fall 11 percent this year to about $12 billion, according to media research firm Magna Intelligence.
However, News Corp said revenue in its rapidly growing digital real-estate unit jumped 18.3 percent to $226 million.
Momentum in the business is expected to accelerate this year, Chief Executive Robert Thomson said in a statement.
The business includes REA Group Ltd (NYSE: REA), a leading real estate advertising company in Australia, and Move Inc, which operates Realtor.com in the United States and other countries.
Revenue from the company's book publishing business fell 4.9 percent to $389 million, compared with the year-ago quarter, which gained from the release of Harper Lee's "Go Set a Watchman".
The company, whose newspapers include the New York Post, the Times in London and the Australian, said its revenue fell to $1.97 billion from $2.01 billion a year earlier.
News Corp's net loss attributable to shareholders was $15 million, or 3 cents per share, compared with a profit of $175 million, or 30 cents per share, a year earlier.
On an adjusted basis, the company reported a loss of 1 cent per share.
Analysts on average had expected the company to break even on revenue of $1.96 billion, according to Thomson Reuters I/B/E/S.
Up to Monday's close of $12.22, News Corp's shares had fallen about 8.5 percent this year.
(Reporting by Narottam Medhora in Bengaluru; Editing by Anil D'Silva)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Delta Air Lines (DAL) Announces Dan Csont as Vice President of Brand Management
- Drone strike kills militant linked to Charlie Hebdo attack: U.S.
- Brazil prosecutors say Lula acted for Saab to win jets order
Create E-mail Alert Related CategoriesReuters
Related EntitiesRupert Murdoch
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!